SAP Fights Off Oracle in CRM Market

By Mel Duvall  |  Posted 2006-06-13 Print this article Print

SAP was the top vendor in the category with about 26% of the market in 2005, but Oracle is closing in after its purchase of Siebel. (Baseline)

SAP still brings home more dollars from its CRM software business than anyone else, but Oracle is closing in on the German giant. Last year, SAP was the top vendor by revenue in the customer relationship management category with about 26 percent of the market, followed by Siebel with 17 percent and Oracle with 6.4 percent. However, with Oracles purchase of Siebel Systems in January, Oracle now controls 23 percent of the market.
CRM software experienced strong growth in 2005, according to Stamford, Conn.-based research firm Gartner, as companies looked for more opportunities to drive revenue and expand business lines.
Worldwide CRM revenue totaled $5.7 billion in 2005, a 14 percent increase over 2004, Gartner says., which specializes in an on-demand version of its software delivered over the Internet, owned about 5 percent of the market, and Amdocs also had about 5 percent. The biggest gainer year-over-year was, which experienced a 78 percent gain in revenue, from $158 million to $281 million. "Merger-and-acquisition activity continued relentlessly in 2005, as larger vendors acquired smaller firms and market leaders acquired each other," Gartner analyst Sharon Mertz said in a press release announcing the research. "Buyers were solidly focused on new customer acquisition, expanding wallet share, process optimization and business accountability." Read the full story on Baseline: SAP Fights Off Oracle in CRM Market Check out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.
Contributing Editor
Mel Duvall is a veteran business and technology journalist, having written for a variety of daily newspapers and magazines for 17 years. Most recently he was the Business Commerce Editor for Interactive Week, and previously served as a senior business writer for The Financial Post.


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